L’Oreal will stop sell­ing Garnier brand

China Daily (Canada) - - NEWS CAPSULE -

L’Oreal SA, the world’s largest cos­met­ics com­pany, said it will stop sell­ing Garnier-brand prod­ucts in China , about a week af­ter com­peti­tor Revlon Inc said it would leave the coun­try.

In an e-mail to China Daily, France-based L’Oreal said it had made the “proac­tive” de­ci­sion of dis­con­tin­u­ing the sales of Garnier prod­ucts in China so that the group’s con­sumer prod­ucts di­vi­sion can grow at a “faster and more sus­tain­able” pace.

The tran­si­tion is in­tended to pre­pare for L’Oreal’s fu­ture and strengthen its lead­ing po­si­tion af­ter 17 years in the Chi­nese beauty mar­ket, said the e-mail.

Garnier’s sales were less than 200 mil­lion yuan in the past three years, and it has been los­ing money con­tin­u­ously, which it can’t af­ford as a pub­lic com­pany, said Michael Deng, who fo­cuses on fast-mov­ing con­sumer goods at Roland Berger Strat­egy Con­sul­tants.

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